Central Public Sector Enterprises(CPSEs) has been given 12 months to monetise non-core assets failing which the finance ministry may restrict budgetary allocations to the companies.Non-core assets are assets that are either not essential or simply no longer used in a company’s business operations.
Earlier,Department of Investment and Public Asset Management (DIPAM) had issued the guidelines for monetisation of non-core assets of CPSEs.
According to the guidelines,an inter-ministerial group chaired by the secretary of DIPAM,will identify the non-core assets of the CPSEs on its own and also on the basis of recommendations of the Niti Aayog. However,final decision will be taken by the finance minister-headed panel.
The panel comprising the finance minister,road transport minister and the minister of concerned administrative ministry,approves the assets for monetisation and it should be completed within 12 months from the date of approval.
The amount raised through sale of non-core assets would form part of the disinvestment proceeds.The government has set a target of Rs 90,000 crore to be raised through CPSE disinvestment in the current financial year,up from the Rs 85,000 crore disinvestment achieved in the previous fiscal.